Resource Allocation Problem

StatementThe type of problem most often identified with the application of linear program is the problem of distributing scarce resources among alternative activities. The Product Mix problem is a special case. In this example, we consider a manufacturing facility that produces five different products using four machines. The scarce resources are the times available on the machines and the alternative activities are the individual production volumes. The machine requirements in hours per unit are shown for each product in the table. With the exception of product 4 that does not require machine 1, each product must pass through all four machines. The unit profits are also shown in the table. The facility has four machines of type 1, five of type 2, three of type 3 and seven of type 4. Each machine operates 40 hours per week. The problem is to determine the optimum weekly production quantities for the products. The goal is to maximize total profit. In constructing a model, the first step is to define the decision variables; the next step is to write the constraints and objective function in terms of these variables and the problem data. In the problem statement, phrases like "at least," "no greater than," "equal to," and "less than or equal to" imply one or more constraints. Machine data and processing requirements (hrs./unit)

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...and labor are the key inputs that traditional farmers have at their disposal, therefore maximizing the use of those inputs is an important factor for the farmer. The farmers decisions about where to allocate his/her resources make up the specific “farming system” that he/she has developed to maximize use of land and labor taking into account the biological, spatial and seasonal characteristics of agriculture. Thus, the factors that influence resourceallocation and cropping choices are the biological, spatial, and seasonal factors that negatively affect levels of output on the farm. Biological factors include pests, diseases, and natural conditions (weather) which reflect the fact that crops are living things unlike machines which are not susceptible to weather changes, disease or pests. The spatial factor that influences resourceallocation refers to the limited amount of land that a traditional farmer by definition has, therfore traditional farmers must allocate resources to maximize use of the limited land that they have. Seasonal factors refer to the highs and lows that occur in the use of labor because labor is used intensively during harvest times and significantly less at other times. In response, farmers develop a farming system which allocates resources in such a way as to make use of labor most intensively all year round. The kinds of farming systems that...

...Allocate Resources and Develop Budgets
The resourceallocation and budgeting process is one of the most powerful stages of planning. Resourceallocation refers to the distribution of resources, and in particular finance, from the center to peripheral (outer) levels. Budgeting implies the more detailed determination of precisely how these funds are to be used.
- Managers allocate resources to carry out the plan such as
o Money
o People
o Materials
o Equipment and
o Time
- Sales budget is the expected expenditures to achieve projected revenues. If budget resources are inadequate, the entire plan including sales forecast must be scaled down.
Implement the plan
- Goals or Objectives, strategies, and tactics need to be communicated throughout the organization.
- Sales manager often use management by objectives (MBO) - means that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them.
- Program evaluation and review technique or (PERT) is commonly uses for planning and scheduling.
- Pert diagrams specify a project’s critical path
o sequence of tasks to be completed
o the time to complete each activity and
o responsible individuals.
Evaluation and control
Evaluation and control is an essential part of the management process. It is also the final stage,...

...the product managers and executive vice presidents and makes decisions based on their reports and the Monthly Operating Package (MOP).
• The CEO is the Chief Operating Decision Maker.
• The CEO makes resourceallocation decisions and assesses performance based on the gross margin of each division.
Identification of Questions & Alternatives
The questions and alternatives that follow are regarding the disclosure of segments and aggregation criteria.
1. Identify the operating segments for SPI. Does it matter what information the CODM uses when making allocation decisions and assessing performance?
2. Which of SPI’s operating segments can be aggregated? Which segments need to be reported separately? Do any of the segments fall into the “all other” aggregate category?
Conclusions and Authoritative Reasoning
1. Sell-it Products should report seven operating segments in their Annual Report.
a) ASC 280-10-50-1 states, “An operating segment is a component of a public entity that has all of the following characteristics (a) It engages in business activities from which it may earn revenues and incur expenses, (b) Its operating results are regularly reviewed by the public entities Chief Operating Decision Maker to make decisions about resources to be allocated to the segment and assess its performance, (c) Its discrete financial information is available.” All of the three criteria were met...

...The objective of efficient resourceallocation refers to an economy's ability to meet its obligations in ensuring that all social and economic objectives are met without waste, for example to allocate resources so that they are distributed efficiently to improve the standard or living.
This is the only way that we can ensure that we will be able to maximize the number of goods and services that we are able to provide. In addition, we will also be more likely to guarantee the long term availability of the resources that are currently available to us.
The current target for efficiency target concerning labor is 1.5-2% per year or more.
Thus, the economic objective of efficiency in resourceallocation exists when our productive inputs are used to create the highest possible value of national output (ie GDP is at its highest level). In turn, having more G&S available helps to ensure the maximum satisfaction of our society's needs and wants.
In Economics, we distinguish between four different types of efficiency:1.Productive (or Technical) efficiency: Is about firms producing G&S using the least-cost method and by minimizing the quantity of resources used. This is perhaps the easiest type of efficiency to understand. In this instance, we are interested in ensuring that any time we produce a good or service we are able to do so by using the smallest number of...

...Mutual exclusion: only one process at a time can use a resource. If another process requests that resource, the requesting process is delayed until the resource is released; Hold and wait: a process holding at least one resource is waiting to acquire additional resources held by other processes; No preemption: a resource can be released only voluntarily by the process holding it, after that process has completed its task; Circular wait: there exists a set {P0, P1, …, Pn} of waiting processes such that P0 is waiting for a resource that is held by P1, P1 is waiting for a resource that is held by P2, …, Pn–1 is waiting for a resource that is held by Pn, and Pn is waiting for a resource that is held by P0
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Deadlock Prevention
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...Managing Project End-Date and ResourceAllocation
Cheryl Lewis-Bonner
Successful Project Management (PM 586)
Professor Durgin
November 19, 2012
Successful Project Management
Managing Project End-Date and ResourceAllocation
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2. Allocation of resources.
3. Resolution of over allocated resources.
General Project Management Practices
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...﻿Natural resources occur naturally within environments that exist relatively undisturbed by humanity, in a natural form. A natural resourceis often characterized by amounts of biodiversity and geodiversity existent in various ecosystems.
Natural resources are derived from the environment. Some of them are essential for our survival while most are used for satisfying our needs. Natural resources may be further classified in different ways.
Natural resources are materials and components (something that can be used) that can be found within the environment. Every man-made product is composed of natural resources (at its fundamental level). A natural resource may exist as a separate entity such as fresh water, and air, as well as a living organism such as a fish, or it may exist in an alternate form which must be processed to obtain the resource such as metal ores, oil, and most forms of energy.
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